Productivity and the Human Resource Management - Essay Example

Productivity Introduction Productivity is a term that would ring in any manager’s or any responsible employee’s mind in the scope of a project. A chance given to describe this term would bring a wide range of perspectives that individuals at different levels would define productivity. Some people would define productivity in terms of performance, some in terms of input and output, others in terms of the job category, while others would go to the lengths of human resource and working environment. However, given the various perspectives from various scholars and logic, I would define productivity as a measure of performance as compared to the ratio of output produced in relation to the input inserted into any task or project. This definition, however, shouldn’t tie any other opinion down as various knowledge bases would come up with various definitions given their respective contexts. Many factors have been brought to the forefront in a bid to expound the basis that productivity is defined. Leonhard and Simaan consider productivity as a function derived from quality of work, time, and the initial budget. On the other hand, Young groups factors that affect productivity such as the human resource management, work environment, and the particular job in context (Young, 2010). This report will consider some of those factors that affect productivity, especially in construction-related projects, therefore, trying to see points in which productivity could be improved. The structure of the paper will have a literature review section, an analysis of the relevant aspects that surround productivity, and a conclusion summed up from the entire work (Leonhard and Simaan, 2010). Literature Review This section will sample two case studies of construction projects where analyses were performed to measure the productivity levels at each scenario using various techniques, and the conclusion summed up from the analyses. The undertaken steps to rectify the factors that lowered productivity will be discussed. All these discussions will be aligned with the factors that affect productivity and the refinement will help us see some ways to improve productivity; these aspects will be expounded more in the next section of this report. Construction of the Commercial Bank Headquarters in Edinburgh was undertaken as a case study to see some of the factors that affected productivity. The managers in charge of this big project took the initiative to check up on their employee productivity. The main participants were the top-level project managers and the onsite workers who were used to collect the information for analysis. It was discovered that the main technique the managers used to monitor production levels was The Last Planner System. This is a technique that puts three aspects in consideration: task milestone, percentage measurement of completion, and time or schedule allocation. The technique was updated on a daily basis to see the amount of task completion compared to a blueprint of the milestones set for each task. The results were further broken down and graphed, with the Percent Plan Complete (PPC) on the y-axis and the number of days on the horizontal axis. These graphical representations were highlights of the working crew and management during their periodic meetings to discuss factors that contributed to various fluctuations and a way to improve the overall productivity. Ballard gives credit to this technique of productivity monitoring as progressive onsite tasks are closely monitored and adjustments done to the latter to ensure that productivity is maintained at high levels as per to the expectations of the project owners. Labor productivity levels are also monitored, helping a lot in the management of the workforce in such a context (Ballard, 2010). However, this method has its low sides in that its mostly paper-oriented, thus, managing large volumes of tracking and graphical presentation would be very tricky both in computer-based technologies and in manual archiving. This review puts emphasis on time management, labor productivity, and general scheduling (Radosavljevic, and Horner, 2002.). Kaka and Chan take us through a case study of self-confessing company with no productivity measuring technique and experience. Construction of a car park on a multi-storey building for a Scottish based airport is undertaken by a new company in construction matters and a request by productivity analysts to monitor their work is immediately granted on condition that feedback is provided and further advice is given to the company on how to improve productivity. This was directly attached to the possibility of attaining higher productivity and performance on their debut project in order to gain preference for any future opportunity. This fact is proof that productivity has a high chance of improving marketability for any performing company (Kaka and Chan, 2008). The main tool that was used in this case, as Kaka and Chan state, was the timesheet for the worker. This was so done to avoid the isolation of duties in the ongoing construction and, thus, indicate fairness in wage allocation in comparison with the time each laborer dedicated to construction work. The tool presented approximation of work productivity on the basis of the activity partaken, the man-hours invested in that particular activity, the output in comparison with the location of task, and the general quality resulting. This technique equally distributed its productivity measure on most bases that many have defined productivity: time, budget, and quality. Shortfalls are, however, noticed in this technique. The laborers used the advantage of time-wage allocation as an excuse to earn more by outsourcing their skill to outside projects. The technique is also cumbersome, and a case is given where a surveyor resigned, leaving behind no willing successor (Kaka and Chan, 2008). The analysts indicated the need for machinery when aspects as mentioned above were the main foundation of waging. Machinery would improve efficiency, hence, productivity levels, eliminating the chances of shoddy work from workers only selfish to extend their wages from more working hours but poor performance and, thus, productivity levels. Analysis of Factors Affecting Productivity This part of the paper will discuss factors sewed up on three major factors: quality of output, time, and budgetary considerations. Quality is a term any project manager would like attached to his or her end results. To many, this is what defines productivity. No one would like to carry out a project that is way out of time schedule, sometimes rendering every effort committed useless. This puts much emphasis on the time factor that concerns productivity. Last but not least, any project’s objective aims at raising money. It would be illogical to go out of any budgetary plans in a project, thus, wasting money that would have been saved in a bid to develop a money-generating source. Time is a great factor of any activity on the earth, regardless of the context of revolution. Business ventures, more so projects, inclusive construction projects, put a lot of consideration on time management as a direct factor that affects productivity. Jergeas includes some pertinent issues on time in project contract administration, stating that there is always a reward policy that comes with timely achievement of any milestone in a given project. Furthermore, it would be only such that would guarantee approvals from the top-level management as relevance would be attached to successfully completed tasks on schedule (Jergeas, 2009). Timely execution of tasks in a project would, thus, be enhanced by several factors from the entire stakeholders of a project. One, especially in the case of construction as previously discussed, is the apt delivery of materials needed. No work would commence with inadequate or no materials at all. Planning, a prerequisite of any project, should be delivered upfront any activity kicking off. This would give the project managers an ample time to make the time schedule for the entire period and set milestones to be achieved within given periods of time. However, we are reminded of proper time allocation to ensure enough allowance of time to produce quality, the next aspect that is to be discussed (Barke, 2005). In order to ensure time is well managed, tools, such as the ones discussed in the literature review, namely, Timesheets, and The Last Planner System, should be well utilized to ensure that everything runs as per the time schedule. It is with such tools that the management would know anything going amiss given the indication that will be shown from poor time management and low productivity. Quality is another core aspect of productivity highly regarded as the number one factor that would really define the end products. This drives to one fact: expert skill equipment to any workers in a project. Many projects have suffered the agony of poor management and low skill and experience, resulting to undesirable work products. However, it should be noted that not only skilled labor would equal perfect performance, but orderly execution of tasks according to the plan and working as a team (Coelli, Rao, and ODonnell, 2005). Teamwork is another aspect that would automatically promise quality. Teamwork has repeatedly been proven as a success factor in any project undertaking. It has always produced the quality that is desired, and it directly depends on the ability of the managers to bring cohesiveness in a team. This leaves a lot to task to managers, as most employees, regardless of the skill, will only corporate with a manager who has a good attitude and is mindful of the juniors (PMI, 2000). Quality assurance is one policy that would ensure quality standards are reached to the latter. These would include simple acts like easily identifying loopholes early enough to rectify them before a bigger problem brews up. It wouldn’t necessarily mean the whole process of committing resources to an outsourcing quality assurance company. Budgetary considerations are usually the number one factors that allow for any commencement of project work. Enough resources that include manpower, material, and wages are a key towards any success to productivity in a project. To ensure that this is accomplished, financial managers need to keep track of any minute details that entail resources, auditing after short periods with the aim of ensuring that resources are utilized as planned. However, quality should never be compromised in a bid to minimize on cost as this is one major factor that determines productivity. Impact of Factors Affecting Productivity on Businesses Productivity will always be tailored for only one purpose: business. This directly brings an association of the factors that affect productivity to business, a discussion that is to be put in this section of the report. Time is a great factor of business. Business revolves about the simple but complex environs where any delay could cost any organization tremendous losses. Customers always find pleasure on the basis of timely deliverance of products and services. Any delay of schedule or lapse in time would, therefore, automatically equal to losses. On the other hand, timely execution could translate to profits beyond any measure for an organization. Time is, therefore, a direct factor that impacts any business scenario (Lisbin, 2009). Quality is always the output of product and service that any client looks for. Being a subset of productivity, any business will boom in the event of production of quality output. Market demand is set to rise too, directly pointing to magnified opportunities and profits. Any business’ objective is always profit. This is unless it is a non-profit making organization. Budgetary consideration, another subset of productivity, is the foundation of any business. Poor financial management results to extreme losses that could even cause a company to go bankrupt and close shop. On the other hand, proper management would reward an organization with immense profit and more capital to invest even more on newer and more paying ventures. Conclusion The association of time, quality and budget is inseparable. A lack of any component or a deviation will cause failure in achieving the key objective in any scope of a project: productivity. For maximum productivity to be attained, minute details as discussed in this report, including the tools used and the periodic sampling, are key for achievement. Any ignored detail from either arrogance, ignorance or whatever issue will always lead to one result: poor productivity levels. It is, therefore, mandatory for project management to carefully plan their way through a project prior to the initial commencement just to ensure that every aspect of time scheduling, quality attainment and budgetary consideration are kept into focus for any productivity to be achieved by the end of the project. Bibliography Young, B., 2010. Factors that Influence Productivity of Any Work Place, [Online] Available at http://tobryanyoung.com/2010/06/factors-that-influence-productivity-of.html [Accessed 23 February 2012] Ballard, G., 2000. The last planner system of production control. Cambridge: University of Cambridge Press. Jergeas, G., 2009. Improving Construction Productivity on Alberta Oil and Gas Capital Projects. Alberta: University of Calgary Publishers. Leonhard, E. and Simaan, M., 2010. Managing Performance in construction. London: John Wiley and Sons. Chan, P. and Kaka, A., 2008. Construction Productivity Measurement: A Comparison of Two Case Studies. New Jersey: Princeton University Press. Radosavljevic, M. and Horner, R., 2002. The evidence of complex variability in construction labour productivity. Construction management and economics, 20, 3 – 12. Lisbin, S., 2009. Up Productivity. Bloomington: Indiana University Press. Coelli, J., Rao, P. and ODonnell, C., 2005. An Introduction to Efficiency and Productivity Analysis, 2nd edition. New York: Springer. Barke, J., 2005. Time Management: Increase Your Personal Productivity and Effectiveness. Boston:Harvard Business School Press. Project Management Institute, PMI, 2000. A guide to the project management body of knowledge (PMBOK® guide), 2000 Edition. Pennsylvania: Project Management Institute. Read More